The life insurance application process doesn't have to be complicated.
You have discussed your life insurance needs with your agent and you're ready to complete an application. What's next? That depends. Your age, health, type of policy and amount of coverage determines the information required for your life insurance application.
What Is Required?
An application typically covers a broad range of basic information such as:
- Driving history
- Prescriptions
- Hospital stays
- Recent diagnoses
- Foreign travel
- Physician information
Based on your answers, the life insurance company may request more information from you. In some cases, you may need to complete a paramedical exam, phone interview or electrocardiogram (ECG). You may also need to provide medical records from your physician. Be honest on your application. Attempting to conceal information may result in a higher premium or coverage being declined. Even worse, the insurance company could deny your loved ones the valuable death benefit at claim time.
Health Snapshot
While a paramedical exam may make you nervous, it is a great way to get a better idea of your overall health. The examiner will schedule a convenient time and place to complete the exam. During the exam, they will record information like height, weight, blood pressure and tobacco use.
There will also be questions about your medical history. Next, the examiner may collect blood and urine samples. Overall, the process takes about 30 minutes and is usually free to the applicant. You’ll receive a copy of the report that you may review with your physician.
Understanding "No Medical Exam" Offers
Some companies offer life insurance with no medical exams. If you apply for one of these policies, you may think you do not need to disclose your medical information. While you may have the chance to be approved without a medical exam, there is no guarantee that you will receive a policy.
These life insurance companies often achieve their “no medical exam” practice by charging higher premiums. They rely on credit reports and use information gathered from prescription databases. They also review medical information disclosed on the application and establish guidelines around who qualifies for the program. So what happens if an applicant does not fit the mold of a target client? Typically, the insurance company then directs the applicant to complete a medical exam to continue the application.
Workplace Insurance
Applying for life insurance through your workplace usually requires very little underwriting information. The life insurance company is relying on a fair distribution of risk and generally healthy employees. However, group life insurance coverage may not always be the best solution for your needs. If you leave your employer, you may not be able to continue the life insurance policy.
Know your Options
Like many things, life insurance is not “one size fits all.” Insurance needs differ from person to person and from one stage of life to another. Contact your independent agent to design a life insurance program that meets those needs and grows with you.